exempt organization

exempt organization definition - business

exempt organization

An organization, corporation, association, or other legal entity that has been determined by the Internal Revenue Service to be exempt from taxation under federal law. Examples include cemeteries, charitable organizations, churches, fraternal societies, and labor unions. Not all nonprofit organizations are exempt organizations. Also called not for profit, tax-exempt organization.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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